When the economy is at full employment,
a. people are not inclined to borrow so the banking system is unlikely to loan out themaximum allowable
b. firms are inclined to borrow to finance investment so the banking system is likely to end up with little and possibly no excess reserves
c. firms are disinclined to borrow because investment opportunities are fewer in full employment so the banking system has considerable excess reserves
d. bankers become more hesitant to lend money because they are not very confident in the future
e. inflation is high, which undermines people's willingness to borrow so the banking system must lower the interest rate to induce borrowing
B
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The negative slope of the labor demand curve can be attributed to:
A) Moore's Law. B) the Law of Accelerating Returns. C) the Law of Diminishing Marginal Utility. D) the Law of Diminishing Marginal Returns.
The trade balance must equal the level of private and public saving in the country
Indicate whether the statement is true or false